For 20Y2, Tri-Comic Company initiated a sales promotion campaign that included the expenditure of an additional $21,000 for advertising. At the end of the year, Lumi Neer, the president, is presented with the following condensed comparative income statement: Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 20Y1 Sales $766,000 $659,000 Cost of merchandise sold 352,360 336,090 Gross profit $413,640 $322,910 Selling expenses $153,200 $125,210 Administrative expenses 84,260 85,670 Total operating expenses $237,460 $210,880 Income from operations $176,180 $112,030 Other revenue 30,640 26,360 Income before income tax expense $206,820 $138,390 Income tax expense 84,260 52,720 Net income $122,560 $85,670 Required: Question Content Area 1. Prepare a comparative income statement for the two-year period, presenting an analysis of each item in relationship to sales for each of the years. Enter percentages as whole numbers. Enter all amounts as positive numbers. Tri-Comic Company Comparative Income Statement For the Years Ended December 31, 20Y2 and 20Y1 20Y2 Amount 20Y2 Percent 20Y1 Amount 20Y1 Percent Sales $766,000 fill in the blank 0cedf4027fe7fe4_1 % $659,000 fill in the blank 0cedf4027fe7fe4_2 % Cost of merchandise sold 352,360 fill in the blank 0cedf4027fe7fe4_3 % 336,090 fill in the blank 0cedf4027fe7fe4_4 % Gross profit $413,640 fill in the blank 0cedf4027fe7fe4_5 % $322,910 fill in the blank 0cedf4027fe7fe4_6 % Selling expenses $153,200 fill in the blank 0cedf4027fe7fe4_7 % $125,210 fill in the blank 0cedf4027fe7fe4_8 % Administrative expenses 84,260 fill in the blank 0cedf4027fe7fe4_9 % 85,670 fill in the blank 0cedf4027fe7fe4_10 % Total operating expenses $237,460 fill in the blank 0cedf4027fe7fe4_11 % $210,880 fill in the blank 0cedf4027fe7fe4_12 % Income from operations $176,180 fill in the blank 0cedf4027fe7fe4_13 % $112,030 fill in the blank 0cedf4027fe7fe4_14 % Other revenue 30,640 fill in the blank 0cedf4027fe7fe4_15 % 26,360 fill in the blank 0cedf4027fe7fe4_16 % Income before income tax expense $206,820 fill in the blank 0cedf4027fe7fe4_17 % $138,390 fill in the blank 0cedf4027fe7fe4_18 % Income tax expense 84,260 fill in the blank 0cedf4027fe7fe4_19 % 52,720 fill in the blank 0cedf4027fe7fe4_20 % Net income $122,560 fill in the blank 0cedf4027fe7fe4_21 % $85,670 fill in the blank 0cedf4027fe7fe4_22 % Question Content Area 2. The vertical analysis indicates that the costs other than selling expenses (cost of merchandise sold and administrative expenses) as a percentage of sales. As a result, net income as a percentage of sales . The sales promotion campaign appears to have been . While selling expenses as a percent of sales slightly, the cost was more than made up for by sales.